About Texas property taxes

According to the Texas Comptroller of Public Accounts, Property Taxes provide the largest source of funding for schools, streets, roads, police, fire protection and many other services. Local officials in determining the value for property, ensuring that values are equal and uniform, setting tax rates and collecting taxes.

In most counties, county tax collector collects taxes for cities, school districts, and other entities in the county. The Central Appraisal District for each county maintains a record of each property and which taxing entities can tax that property. Your property taxes are computed simply by multiplying the value of your property by the tax rate for each of the entities legally entitled to collect taxes on your land.

Taxes are due each year, generally starting on October 1 of the year in which they were incurred. Taxes are considered delinquent if not paid by January 31 of the year following the year in which they are imposed. Penalties and interest begin to accrue on February 1 of the year following the year in which they are imposed.

Options for lowering your property tax

Each year when you receive your property tax appraisal, you have the option to appeal the assessed value. If you are successful in your appeal and the value is lowered, your tax burden will be reduced.

Reasons to appeal your property tax appraisal value include:

  • As many as 60% of properties in U.S. are assessed higher than current value according to the National Taxpayers Union.
  • Appraisal district values might not reflect the correct value of the property.
  • Homeowners often carry more of the burden than commercial property owners. Houses are generally assessed at or near 100% of market value while large commercial properties may be assessed at 50-70%, according to Patrick O’Connor of O’Connor & Associates in Houston.

You may appeal your home’s appraised value if you believe it is too high. You may consider hiring a third party expert to assist with your appeal. You can find a property tax appeal expert in your area by doing a web search for “Texas property tax appeal.”

Penalties if you miss your tax deadline

If you miss your January 31 tax payment deadline, starting on February 1, the county applies a 7% penalty and interest. By June penalty and interest add up to 15% and by July in addition to penalty and interest there is a 20% attorney fee that add up to 41.6%.

Plan ahead and save

Paying your property taxes before January 31 is optimal. To avoid missing your tax deadline and accumulating penalties and other fees, explore your options long before the January 31 due date. These might include:

  • Personal loan from family, friends or bank
  • Credit card
  • Borrowing against a life insurance policy or 401(k) plan
  • Payment plan with county (short term solution)
  • Loan from licensed property tax lenders

How a Texas property tax lender can help you

Ovation Lending is a property tax lender that helps Texas property owners pay their taxes and avoid penalties that can amount to 42% of their obligation by July 1. We offer one of the lowest interest rates in the industry for you to obtain a Texas property tax loan. The loan terms agreed upon are based on your situation. Our servicing group send you monthly statements to help you stay current in repaying your loan.

Let us help you!

If you find yourself unable to pay your property taxes, you can send us a message or call to one of our compassionate loan consultants at 877-419-7392. The application process is easy. The sooner you secure your delinquent property tax loan, the closer you are to easing the stress that results from ever-increasing penalties and interest.

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